7 Strategies to Make Your Business More Resilient Amid Tariffs - Klaviyo
2026-03-10 23:28 Diff
https://www.klaviyo.com/blog/strategies-for-tariffs

DISCLAIMER: The information contained in this blog post is intended for general informational purposes only and does not constitute legal, financial, or professional advice. Please seek appropriate professional counsel before making any decisions based on the information provided.

President Trump’s reciprocal tariffs took effect on April 9, but were subsequently suspended for 90 days—everywhere except China, which, as of April 10, faces 145% tariffs from the US and has responded by taxing American goods at 84%.

In the resulting confusion, one thing is clear: no one is sure what to do.

When I ran an unofficial poll asking about the first steps people are taking in response to the shifting tariff environment, a third of respondents said they’re trying to cut costs elsewhere. But another third said they’re doing nothing.

Freezing, like fight or flight, is a logical response to a stressful situation. But businesses like yours have about 3 months to prepare before the tariffs hit again. There are actions you can, and should, take now to put yourself in a better situation for the future.

After speaking with several Klaviyo customers about how they’re navigating the 2025 tariffs environment, I’ve come up with 7 concrete steps brands can take to take advantage of the 90-day pause. Let’s dive in.

1. Determine if it makes sense to move your inventory to the US

Because of the delay, you have time to onshore your inventory without additional tariffs. Consider how long your purchase order fulfillment timeline is and make a guesstimate as to how long your inventory will last you.

If you have inventory overseas and you want it to last longer, given how long your production cycle is, consider bringing it overseas now so you can sell it without tariffs applied later.

It is very likely that the de minimis loophole is eventually going to go away forever, though we don’t know exactly when. Weigh the pros and cons of waiting to find out whether you’ll have tariff impact, vs. biting the bullet and onshoring everything now.

2. Determine your supply chain exposure

Chances are, this was the first thing you did. In general, your business will fall into one of these categories—and your tariffs playbook will shift accordingly.

No supply chain exposure in China

If your product category is generally not produced in China, your task is easier to manage. First, talk to all of your supply chain suppliers and ask them to give you a price reduction due to tariffs. Many will do something. Second, figure out how soon you may need to make your next purchase order. If you have the cash and can handle the margin impact, stay the course.

If your product category is generally produced in China, but your brand’s inventory is not, consider getting aggressive against competitors. Many consumers are starting to buy more now to stay ahead of potential price increases, so this could be an opportunity to win market share.

Consider lowering your prices, increasing your ad spend, and, above all, educating your customers about your lack of exposure and what it means for them: that your prices won’t spike unexpectedly.

Some supply chain exposure in China

Your next steps will depend on where in your supply chain you have exposure.

  • If your exposure is in raw materials: See if you can shift sourcing to other countries you work with and reduce how much you source from China.
  • If your exposure is in manufacturing/production: See if you can shift volume to other manufacturers. Look into whether you can ship your inventory in raw parts and finish them in the US. This could change your landed cost, which could affect your tariffs, so be sure to model it out first.
  • If your exposure is in shipping: Look into new vendors and compare the cost of shipping direct to the end buyer from the country of origin vs. bringing a bulk order to the US and fulfilling domestically. You could also consider fulfilling from Canada or Mexico—just be sure to model out estimated costs first.

Wherever you have exposure, determine whether you might be able to find another supplier in a country that’s less affected by tariffs. Importantly, do not sacrifice on quality if you can help it.

Supply chain fully produced in China

If your supply chain is fully produced in China, here are a few ways to start reducing your exposure today:

  • Estimate your shipping cost arbitrage. It might be possible to ship your inventory in raw parts and finish them in the US. Just be sure to model it out first—this could change your landed cost, which could affect your tariffs.
  • Explore bonded and free trade zone warehouses. Bonded warehouses are under customs control, so you don’t have to pay customs when the inventory lands. Instead, you pay as you pull it. This delays duty payments. The downside is it costs a bit more.
  • Move all international inventory to warehouses/3PLs. Do this as fast as possible. It may be worth paying a premium on shipping to get it in a place where you can fulfill.
  • Shop 3PLs. You might be able to get a better rate somewhere else.

3. Audit your product catalog and purchase order cadence

Here are a few guiding questions to help you start this process:

  • Which products have slower sales cycles?
  • Which products drive lower contribution margin?
  • Which products have high margins?
  • Which products are we bundling?
  • What would happen if we didn’t create another purchase order for some of our inventory?
  • What would be the business impact of doing more frequent purchase orders with lower inventory per order?

4. Test price elasticity

In this climate, few businesses will be able to avoid price increases. Ultimately, price increases are straight additions to margin contribution. A huge drop in conversions will obviously reduce revenue, but it’s possible to raise prices in a way that doesn’t materially harm sales—and actually ends up increasing your profit.

It may seem counterintuitive, but Drew Marconi, CEO of Intelligems, points out that “a 5% price increase can lead to a 50% increase in profits.”

“There is a ton of nuance in this, of course, and the lower your profit margins, the more you have to gain from a price increase. Because all of that price increase flows to your bottom line,” Marconi writes.

That’s why it’s worth testing. “From our experience, most prices and offers are far from optimum,” Marconi explains. “Our data shows that the likelihood of a variant winning in a price test is almost twice as likely as a variant winning in a traditional CRO test.”

Plus, if tariffs don’t end up hitting after all, you can then lower your prices—and make a bunch of noise about it.

5. Raise cash now

Regardless of your supply chain exposure, it’s not a bad idea to start raising cash now. Aside from raising prices (carefully!), here are a few other ways to generate some liquidity:

  • Run a promotion of existing inventory. Consumers know what’s coming. Encourage them to shop now, before prices increase. Consider creating new product recommendation feeds for overstock or products with wider margins.
  • Consider credit. Depending on your cost of goods and services, you may need to pay importers more to get more product. So talk to banks. Open a line of credit. Be prepared to accept worse terms for more liquidity, just in case. You don’t have to draw down the cash until you need it, so it will not create exposure until you pull out cash.
  • Ask to split the impact of tariffs with suppliers. Ask your suppliers if they will give you a pricing break given the tariffs. They likely don’t want to lose your business.
  • Negotiate longer net payment terms from suppliers. Ask every one of your suppliers for a grace period on payment. You can also consider asking for discounts, but it’ll probably be easier to delay payment.

6. Over-communicate with your customers

On that note, remember that your customers are just as worried about tariffs as you are. Almost one-third of US consumers would prioritize spending on essential items this year if a trade war or tariffs increased the price of products they regularly purchase, according to a January survey from First Insight.

But with tariffs dominating the news cycles, consumers might be more receptive and sympathetic to communication around the consequences now than they will be in 3 months.

During times of uncertainty, people appreciate honest, vulnerable, and empathetic communication. Whether you’re planning to list tariff fees in shopping carts or simply raise prices outright, now’s the time to start building a genuine emotional connection with your customers around what’s happening.

I love this example from travel gear brand BÉIS. Here’s what’s working well:

  • It’s direct and transparent—no beating around the bush. “Here’s the situation: Costs are up, and unfortunately, our prices will have to follow suit.”
  • It doesn’t sacrifice brand voice for honesty. “We promise we’re fighting these increases with every trick in our playbook. Our finance team hasn’t slept in days, our spreadsheets have spreadsheets, and we’ve considered everything from company-wide ramen diets to asking our CEO to start an OnlyFans. (Legal said no to that last one. Rude.)”
  • It encourages buying now, without being pushy about it. “If you’ve been eyeing something, now might be a good time to make your move, as current pricing remains in effect—for now.”
  • It expresses gratitude to readers for their patience and loyalty. “Thanks for sticking with us through whatever economic plot twist comes next.”

I also received a tariffs-related email from French apparel brand Officine Générale. Here are a few reasons it stood out to me:

  • It’s reassuring. The email assures customers that during a time of uncertainty and change, one thing remains the same: the brand’s “commitment to a seamless experience.”
  • It’s informative. The email reminds customers that “all duties and taxes are included at checkout,” and that the brand will never ask them to “pay additional fees upon delivery.”
  • It includes contact information. Customers who still have additional questions or concerns can reach out via email for support.

Finally, apparel brand Wildfang not only sent an email about tariffs to subscribers, but also set up a webpage readers can visit to educate themselves on the situation, including a video of the brand’s CEO doing an interview on CBS to discuss the impact of the tariffs on small businesses.

The email, meanwhile, works well because:

  • It’s personalized. The email addresses the reader by name, and the formatting makes it feel like a letter from a friend.
  • It reiterates brand values. The email explains the steps the brand is taking to maintain their commitment to a transparent, sustainable supply chain and climate neutrality.
  • It invites readers to help, then outlines how they can do it. Sure, shopping with Wildfang is one way. But the email also encourages readers to stay informed, talk to friends and family, and call their representatives.

7. Use the right tech to reduce operating costs and work more efficiently

This one’s always important, but perhaps now more than ever. Explore how you can use new technology and tools creatively to reduce costs and operate more efficiently. Here are a few ideas:

  • Compare your tech stack to that of your peers in the industry and see if there are opportunities to cut or reduce spend.
  • Reach out to all your software vendors and ask them to pitch you on consolidating multiple tools and what that would mean for costs.
  • Cut loss-leading advertising. Use your analytics and reporting software to make sure you’re investing marketing spend only where it’s most likely to pay off.
  • Wherever possible, lean on AI before hiring more people. It’s amazing what new tools can do.

Klaviyo B2C CRM brings together your marketing, service, and analytics in a single platform. Powered by the Klaviyo Data Platform and built-in AI, Klaviyo can help you weather economic uncertainty by reducing your total cost of ownership, empowering you to work smarter and faster, and equipping you with the data, marketing automation, and customer service solutions you need to build personalized, lasting relationships with your customers.

Start building a more resilient business with Klaviyo

Sign up